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IFC 1 to be sold for up to £43million

IFC 1 to be sold for up to £43million

Monday 30 July 2018

IFC 1 to be sold for up to £43million

Two of Jersey's main office blocks are on the cusp of being sold.

Property agents say that the first building in the International Finance Centre, which was on the market for £43.3million, has attracted seven bids, and they are now finalising 'heads of terms' with the purchaser in what's being described as a very positive local commercial property market.

The building is owned by the States of Jersey Development Company. 

In addition the larger Gaspé House (165,000 sq ft) at the end of Esplanade, home to Royal Bank of Canada and Deloitte, has attracted three potential purchasers with bids at, or above, the asking terms - reported to be around £90m - in what could be the largest single asset sale the Channel Islands has seen, for developers Dandara. 

RBC Broad Street

Pictured: the old RBC building in Broad Street, soon to be announced as a new base for the States (Credit: Google Maps)

The news comes as the States home in on leasing the old RBC offices in Broad Street as part of an office modernisation project aimed at bringing public employees into fewer buildings in a bid to reduce costs; last week the States Chief Executive Charlie Parker suggested that the current States HQ in Cyril Le Marquand house could be used for housing. 

JIFC International Finance Centre Building Four

Pictured: the first of the planned six IFC buildings, reported to be on the market for £43.3million

Speaking in Property Week, Phil Dawes, the MD of D2 Real Estates who are acting for the States of Jersey Development Company on the sale of the 68,000 sq ft IFC 1 is quoted as saying: 

“It’s under offer now and it’s gone really, really well. It’s going to set a new benchmark yield for the Channel Islands. It’s not just the one party – we had about four bids at around the same level and about seven bids in total. It’s about as positive as it can get for the Channel Islands investment market at the moment.”

The second IFC building is currently being constructed, and is due to complete soon with half of the space leased to Sanne Group:

“We’ve got terms out on the majority of the second floor and strong interest in the ground and first floors as well, so that will be let in the next few months. The ground floor is going to be food and beverage and it’s really important to get the right occupiers on that. We’re prepared to hold out for the right occupier."

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Posted by L Brindle on
So where's the huge return we were all promised going then ? Just asking.
Posted by Simon Dodkins on
Looking forward to learning more about the trickle down effect of these huge sales and how they benefit the public at large.
Posted by Davey West on
11.1.1 Senator P.F.C. Ozouf:
The first phase of the Esplanade Quarter is designed to provide needed office accommodation, demanded office accommodation, in a phased way.
Combined with the amount of office accommodation that can be provided on the site, it is unique in St. Helier and it allows the industry to develop. If there is demand and if there are tenants.

In terms of the return of which other schemes do not provide a return, this provides a return of north of £20 million net receipt just for Phase 1.
Clearly SoJDC are doing an excellent job getting a £20 million profit on a sale price of ( up to ? ) £43.3 million even though the building is not fully let ? If this price has not been achieved what is the net return ? What has gone wrong after ex senator's Ozouf convincing statement ?
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